SPREADS

March crush trades to 95.48c/bu while oilshare trades to 32.47%.  Dec/March corn narrows into 5 1/4c from 6 1/4c, no deliveries.  March/May corn trades from 3c to 3 3/4c.  Dec/March corn trades from 8 1/2c to 10 1/2c on deliveries.  March wheat/corn trades from 1.62 1/2c down to 1.60c. 

PALM OIL

Feb. closes down 34 ringgits, as lower exports are weighing on prices.  

NEWS

The stock market is down 140 pts with crude slightly weaker at $43/barrel.  The nonfarm private sector in the US added 307,000 jobs in Nov, signaling a slowdown in payroll gains, as reported from ADP. 

DELIVERIES

Soyoil:  100   CHS puts out 100, ABN Amro stops 96

SRW:   110

KC wheat:  5

CALLS

Calls are as follows:

beans: 12-13 lower

meal:  6.00-7.00 lower 

soyoil:  10-15 lower

corn:  3 -4 lower

wheat:  1 higher

canola:  5.00 lower

BUSINESS

No business announcements

TECHNICALS

Jan Beans:  Trading range high is $12.00, and the market is attempting to find its lows.  Funds are still selling, but if prices can reach down to $11.35/$11.37 think we may find some support from a Fib. retracement stance which is 38% from $10.50-$12.00 measurement.  Would also look for bumps higher to perhaps still find selling interest.

first support: $11.45

resistance:  $11.55/$11.60

possible range: much the same or lower

Jan Meal:  Trading range is from the high of $400.00 down to major support at $380.00.  This market has held up well and the ADX is still strong.  Would look for another test of $380.00, but should it hold would begin to cover a short or price something.  Any violation of $380.00, however, suggests we see a steeper fall towards $370.00/$371.00, in which case would cover a short or try the long side of the market.

key trendline support: $380.00

resistance:  $386.00

possible range: much the same or lower

Jan Soyoil:  Key support is located at 3650c, which is a cycle low from 39c.  If short would probably cover something in.  If one market along with wheat trades both sides, think soyoil is it.  Would look to trade back over 37c at some point today in stabilizing trade.

first support: 3650c

resistance:  37c

possible range: much the same

March Corn:  Contract high is $4.39 1/2 and the market is searching for stabilization. Key support is $4.10/$4.12, and would look to test it.  However, if short would probably cover something in or try the long side of the market for a $4.10-$4.40 trading range. 

first support: $4.11/$4.12

resistance:  $4.19/$4.22

possible range; much the same  

March Wheat:  major direction is lower with a short-covering bounce from double lows of $5.74.  The 100-day moving average is located at $5.71, and think we bounce off of it should we go there for a $5.70-$6.00 trading range.  The market has yet to find its trading range lows, however, so lower prices could be around the corner.

best support: $5.71

resistance:  $5.85/$5.88

possible range: $5.75-$5.85 or lower

JANUARY MEAL

The overall trading range is from $380.00 up to $400.00.  The ADX trend is still firm at 47, meaning that prices could correct to the upside at any moment.  The move down to $380.00 meets lower term major trendline support, though prices are now below the 20-day moving average at $389.00.  If needing to price, this would be a good point to do so, and wait to see if prices can take out major support at $380.00.  In that case, the next best line of support would be from $365.00-$370.00, and could be more patient until we get there.  However, given that the market is more balanced from overbought, and that the trend is fairly strong, would look to cover a partial short down to $380.00, price, or perhaps go long with a tight sell-stop in case we dip under major support.  

TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America